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What are the tax consequences for a money market? How much will tax be for a $1000 investment? |
What are the tax consequences for a money market? How much will tax be for a $1000 investment? Depends on tax bracket and how long open, but anywhere from 3-6 dollars if you are not rich, and up to maybe 18 dollars if you are. Unless it is a tax free or state money market all "dividends" are taxed as ordinary income. It will be taxed just like interest on a bank account. So - it depends on your tax bracket. Here in Canada, you are only taxed on capital gains.... Although it may not be that way in other places. |
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